In recent years, mergers and acquisitions have become more commonplace in the nonprofit world, particularly as economic factors have increased the competition to obtain a steadily decreasing pool of public and private financial support.

While many nonprofit mergers and acquisitions are driven by sustainability challenges - such as a lack of available funding or a succession vacuum - an increasing number of philanthropic organizations have sought to merge or acquire other nonprofit entities for more strategic reasons, such as to:

• Increase the quality and efficiency of services provided
• Obtain new programs, expertise, and personnel
• Enhance fundraising capabilities
• Address succession issues
• Expand into new geographic and demographic issues

Perlman & Perlman advises clients that are seeking to acquire or merge with other organizations in order to better fulfill their missions, while still retaining their tax-exempt status. In addition, we assist nonprofit entities that are dissolving operations in conducting a timely and seamless transfer of programs to other organizations, helping to preserve the service to and support of their beneficiaries.

Our Mergers, Acquisitions & Dissolutions Services include:

• Conducting due diligence prior to a merger or acquisition
• Advising boards on their options in a pending insolvency
• Drafting and negotiating merger documents
• Filing merger plans with appropriate regulatory agencies
• Transferring programs of dissolving nonprofits to other organizations to ensure a smooth transition and preserve the status quo for beneficiaries
• Dissolving nonprofit organizations and advising on the final disbursement of assets
• Representing nonprofit organizations in court proceedings for involuntary dissolutions and bankruptcies
  (i.e., dissolutions in which the nonprofit does not have enough resources to pay all of its creditors)